One of the world’s largest pay gaps exists here in the United States. Some economists estimate that the average American worker earns a wage that is nearly 300 times lower than that of top executives. But Dan Price, founder of Gravity Payments says, “The market rate for me as a CEO compared to a regular person is ridiculous, it’s absurd,” and he aims to make a difference.
On Monday, Price gathered his staff of 120 and made an announcement that both floored and excited them all. Over the next three years, he intends to increase every one of his employee’s wages to a minimum of $70,000 a year. Bernardo Chua (facebook.com) has learned that, for some of the staff, that increase represents a doubling of their current income, and they all couldn’t be happier. The idea came to him after reading an article on happiness which explained that receiving extra money has a very positive affect on people who make less than $70,000 a year.
Raised in rural southwestern Idaho, the entrepreneur, at the ripe age of only 19, started the credit-card payment processing company which is now based in Seattle. In order to implement his 70K minimum wage plan, he intends on reducing his own salary of close to $1 million to the same amount he’s giving his employees. Twenty-four year old Haley Vogt, who currently makes $45,000 a year as a communications coordinator at Gravity says, “Everyone is talking about this $15 minimum wage in Seattle and it’s nice to work someplace where someone is actually doing something about it and not just talking about it.” The difference Dan Price is making for his staff is surely making them happier.